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True or False? Explain A. The traditional liquidity premium theory states that long-term interest rates are greater than the average of current and expected future
True or False? Explain A. The traditional liquidity premium theory states that long-term interest rates are greater than the average of current and expected future short-term interest rates. B. According to the market segmentation theory, short-term investors will not normally switch to intermediate- or long-term investments.
C. According to the liquidity premium theory, investors preferring long-term bonds over short-term bonds would require a lower liquidity premium.
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